Palmerston North Mayor Grant Smith: $550 million reasons for Three Waters reform

In the sights of Three Waters reforms, the Turitea reservoir has been an important city asset since the first water catchment project was developed in 1888-89. Photo / Palmerston North City Council

OPINION:

Covid continues to grab the headlines, but so does central government's Three Waters reform proposal.

Both have long-term ramifications for the progress and prosperity of Palmerston North.

Minister of Local Government Nanaia Mahuta has now mandated that regional authorities accept the outcome of the Government's Three Waters reforms. Three Waters is the Government's plan to establish nationally four publicly owned entities to take responsibility for drinking water, wastewater and stormwater away from local councils.

Given the signals Government has been sending for some time now, this decision doesn't surprise me.

The minister has made her commitment to reform clear, and the Government has the numbers to push this through. Although it's never great to have something mandated, at least it gives some certainty over the country's numerous waters projects, including our own here in Palmy.

For those who work in the under-pressure sector it's been an unsettling time, and this announcement has been important for the job security of our people working in this area.

Yes, it's a pity the proposed reforms don't allow an opt-in arrangement for councils, and I can understand the angst around local democracy appearing to be pushed aside by a Government mandate.

But there has been so much misinformation swirling around, with numbers and quotes from various mayors and commentators based on the status quo.

In Palmerston North we realise the status quo no longer cuts it.

There is already a demand for better waters standards to combat climate change and meet growing environmental expectations. It will require massive infrastructure improvements from all councils, while the affordability challenge needs to be addressed nationwide.

So, getting anywhere near full sector endorsement simply wasn't going to happen, forcing the minister's hand.

Although this is a central government reform, the local government sector did ask some years ago for improvements to the planning, funding and financing of the nation's waters infrastructure.

Although never formally voting, Palmerston North City Council has generally been supportive of the reforms. I know the true cost to Palmy ratepayers for a new wastewater plant, and it was going to be unaffordable doing it on our own.

Instead, the council will still own and have a governance role over our waters assets, but control will be transferred to a new joint, publicly owned entity. This new entity will build, maintain, operate and pay for the infrastructure.

We get sign-on and waters debt funding of about $75+ million and lose all the future liabilities of our planned new wastewater plant. This is a biggie for Palmerston North with $500m worth of reasons in favour.

There is more detail to come about our local voice and accountability in this new entity, and how infrastructure prioritisation will interface with Resource Management Act planning.

We understand the Government is setting up several joint technical working groups to work through existing issues along with any others that come up.

But as a council we know things can't stay the way they are. Economies of scale, shared services and combined waters balance sheets are the only way to achieve the better infrastructure our communities are demanding.

As for Covid, certainty is also better than uncertainty, and the sooner our DHB hits 90 per cent full vaccination, the better.

We are doing well as a city, but there is always room for improvement, and if we are to enjoy more freedoms this summer, we need to ramp up our inoculation rate.

Please spare a thought for all local businesses, events and entertainment providers doing it hard because of the ongoing uncertainties and restrictions. You can make a difference by supporting our cafes, restaurants, retail and entertainment events.

Mask up, contact trace and vaccinate so we can look forward to restrictions easing and borders opening for visitors and international students.

• Grant Smith is the mayor of Palmerston North.